IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v234y2021ics0925527321000116.html
   My bibliography  Save this article

Electric vehicle battery secondary use under government subsidy: A closed-loop supply chain perspective

Author

Listed:
  • Gu, Xiaoyu
  • Zhou, Li
  • Huang, Hongfu
  • Shi, Xiutian
  • Ieromonachou, Petros

Abstract

Electric vehicle batteries should normally be removed from electric vehicles when their power capacity fall to 70% ~ 80% of new batteries. However, removed batteries can still be secondary used for other purposes, such as energy storage, before remanufacturing. To promote electric vehicle battery secondary use, this research studies a two-period battery secondary use closed-loop supply chain model consisting of a battery (re)manufacturer, a secondary user and a government. The government may provide subsidies for the secondary users to incentivize electric vehicle battery secondary use. It is found that, only when the recycled batteries' remaining power capacity is relatively high or their remanufacturing rate is relatively low, the government will consider a subsidy. In addition, under government's subsidy regulation, secondary battery users need to determine the quantities of batteries with relatively high power capacity for secondary use. Theoretically, this study enriches the research field of sustainable development of electric vehicle battery industry. Practically, this study also helps practitioners to better manage closed-loop supply chains with battery secondary use, and to enhance supply chain efficiency. Also, this study contributes to governments' regulatory decisions toward electric vehicle industries to balance economy and sustainability in society.

Suggested Citation

  • Gu, Xiaoyu & Zhou, Li & Huang, Hongfu & Shi, Xiutian & Ieromonachou, Petros, 2021. "Electric vehicle battery secondary use under government subsidy: A closed-loop supply chain perspective," International Journal of Production Economics, Elsevier, vol. 234(C).
    • Handle: RePEc:eee:proeco:v:234:y:2021:i:c:s0925527321000116
    DOI: 10.1016/j.ijpe.2021.108035
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925527321000116
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijpe.2021.108035?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Atalay Atasu & Miklos Sarvary & Luk N. Van Wassenhove, 2008. "Remanufacturing as a Marketing Strategy," Management Science, INFORMS, vol. 54(10), pages 1731-1746, October.
    2. Sheldon, Tamara L. & Dua, Rubal, 2020. "Effectiveness of China's plug-in electric vehicle subsidy," Energy Economics, Elsevier, vol. 88(C).
    3. Hattori, Keisuke, 2017. "Optimal combination of innovation and environmental policies under technology licensing," Economic Modelling, Elsevier, vol. 64(C), pages 601-609.
    4. Cai, Xiaoqiang & Lai, Minghui & Li, Xiang & Li, Yongjian & Wu, Xianyi, 2014. "Optimal acquisition and production policy in a hybrid manufacturing/remanufacturing system with core acquisition at different quality levels," European Journal of Operational Research, Elsevier, vol. 233(2), pages 374-382.
    5. Mitra, Supriya & Webster, Scott, 2008. "Competition in remanufacturing and the effects of government subsidies," International Journal of Production Economics, Elsevier, vol. 111(2), pages 287-298, February.
    6. Dongxue Guo & Yi He & Yuanyuan Wu & Qingyun Xu, 2016. "Analysis of Supply Chain under Different Subsidy Policies of the Government," Sustainability, MDPI, vol. 8(12), pages 1-18, December.
    7. Toshimitsu, Tsuyoshi, 2010. "On the paradoxical case of a consumer-based environmental subsidy policy," Economic Modelling, Elsevier, vol. 27(1), pages 159-164, January.
    8. Ferrer, Geraldo & Swaminathan, Jayashankar M., 2010. "Managing new and differentiated remanufactured products," European Journal of Operational Research, Elsevier, vol. 203(2), pages 370-379, June.
    9. Kong, Deyang & Xia, Quhong & Xue, Yixi & Zhao, Xin, 2020. "Effects of multi policies on electric vehicle diffusion under subsidy policy abolishment in China: A multi-actor perspective," Applied Energy, Elsevier, vol. 266(C).
    10. Bulmus, Serra Caner & Zhu, Stuart X. & Teunter, Ruud, 2014. "Competition for cores in remanufacturing," European Journal of Operational Research, Elsevier, vol. 233(1), pages 105-113.
    11. Heymans, Catherine & Walker, Sean B. & Young, Steven B. & Fowler, Michael, 2014. "Economic analysis of second use electric vehicle batteries for residential energy storage and load-levelling," Energy Policy, Elsevier, vol. 71(C), pages 22-30.
    12. Gu, Xiaoyu & Ieromonachou, Petros & Zhou, Li, 2019. "Subsidising an electric vehicle supply chain with imperfect information," International Journal of Production Economics, Elsevier, vol. 211(C), pages 82-97.
    13. Chen, Jen-Yi & Dimitrov, Stanko & Pun, Hubert, 2019. "The impact of government subsidy on supply Chains’ sustainability innovation," Omega, Elsevier, vol. 86(C), pages 42-58.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bai, Qingguo & Chen, Jiguang & Xu, Jianteng, 2023. "Energy conservation investment and supply chain structure under cap-and-trade regulation for a green product," Omega, Elsevier, vol. 119(C).
    2. Cong Wang & Zhongxiu Peng & Xijun Xu, 2021. "A Bi-Level Programming Approach to the Location-Routing Problem with Cargo Splitting under Low-Carbon Policies," Mathematics, MDPI, vol. 9(18), pages 1-34, September.
    3. Enci Wang & Jianyun Nie & Yuhan Wang, 2023. "Government Subsidy Strategies for the New Energy Vehicle Power Battery Recycling Industry," Sustainability, MDPI, vol. 15(3), pages 1-18, January.
    4. Fangfang Zhang & Hao Wang & Xiaoyu Wu, 2021. "The Impact of Government Subsidies on Single-Channel Recycling Based on Recycling Propaganda," Energies, MDPI, vol. 14(23), pages 1-14, December.
    5. Chen, Jiumei & Zhang, Wen & Gong, Bengang & Zhang, Xiaoqi & Li, Hongping, 2022. "Optimal policy for the recycling of electric vehicle retired power batteries," Technological Forecasting and Social Change, Elsevier, vol. 183(C).
    6. Huang, Jianbai & Dong, Xuesong & Chen, Jinyu & Zeng, Anqi, 2023. "The slow-release effect of recycling on rapid demand growth of critical metals from EV batteries up to 2050: Evidence from China," Resources Policy, Elsevier, vol. 82(C).
    7. Jesús F. Lampón, 2023. "Efficiency in design and production to achieve sustainable development challenges in the automobile industry: Modular electric vehicle platforms," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(1), pages 26-38, February.
    8. Xuan Zhao & Benhong Peng & Chaoyu Zheng & Anxia Wan, 2022. "Closed-loop supply chain pricing strategy for electric vehicle batteries recycling in China," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(6), pages 7725-7752, June.
    9. Govindan, Kannan & Salehian, Farhad & Kian, Hadi & Hosseini, Seyed Teimoor & Mina, Hassan, 2023. "A location-inventory-routing problem to design a circular closed-loop supply chain network with carbon tax policy for achieving circular economy: An augmented epsilon-constraint approach," International Journal of Production Economics, Elsevier, vol. 257(C).
    10. Liangui Peng & Ying Li & Hui Yu, 2021. "Effects of Dual Credit Policy and Consumer Preferences on Production Decisions in Automobile Supply Chain," Sustainability, MDPI, vol. 13(11), pages 1-19, May.
    11. Li, Jizi & Liu, Fangbing & Zhang, Justin Z. & Tong, Zeping, 2023. "Optimal configuration of electric vehicle battery recycling system under across-network cooperation," Applied Energy, Elsevier, vol. 338(C).
    12. Liu, Chang-Yi & Wang, Hui & Tang, Juan & Chang, Ching-Ter & Liu, Zhi, 2021. "Optimal recovery model in a used batteries closed-loop supply chain considering uncertain residual capacity," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 156(C).
    13. Wang, Yuyan & Zhang, Xiaozhen & Cheng, T.C.E. & Wu, Tsung-Hsien, 2023. "Choice of the co-opetition model for a new energy vehicle supply chain under government subsidies," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 179(C).
    14. Zhang, Huiming & Zhu, Kexin & Hang, Zixuan & Zhou, Dequn & Zhou, Yi & Xu, Zhidong, 2022. "Waste battery-to-reutilization decisions under government subsidies: An evolutionary game approach," Energy, Elsevier, vol. 259(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ze-Bin Wang & Yao-Yu Wang & Jian-Cai Wang, 2016. "Optimal distribution channel strategy for new and remanufactured products," Electronic Commerce Research, Springer, vol. 16(2), pages 269-295, June.
    2. Xue, Dongmei & Teunter, Ruud H. & Zhu, Stuart X. & Zhou, Weihua, 2021. "Entering the high-end market by collecting and remanufacturing a competitor’s high-end cores," Omega, Elsevier, vol. 99(C).
    3. Wu, Cheng-Han, 2015. "Strategic and operational decisions under sales competition and collection competition for end-of-use products in remanufacturing," International Journal of Production Economics, Elsevier, vol. 169(C), pages 11-20.
    4. Xiong, Yu & Zhou, Yu & Li, Gendao & Chan, Hing-Kai & Xiong, Zhongkai, 2013. "Don’t forget your supplier when remanufacturing," European Journal of Operational Research, Elsevier, vol. 230(1), pages 15-25.
    5. Shi, Lian & Sheng, Zhaohan & Xu, Feng, 2015. "The dynamics of competition in remanufacturing: A stability analysis," Economic Modelling, Elsevier, vol. 50(C), pages 245-253.
    6. Peng, Yu & Lu, Qian & Xiao, Yue & Wu, Xue, 2019. "Complex dynamics analysis for a remanufacturing duopoly model with nonlinear cost," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 514(C), pages 658-670.
    7. Cao, Jian & Wu, Sisi & Kumar, Sanjay, 2023. "Recovering and remanufacturing to fulfill EPR regulation in the presence of secondary market," International Journal of Production Economics, Elsevier, vol. 263(C).
    8. Amitrajeet A. Batabyal & Hamid Beladi, 2016. "A game model of competition for market share between a new good producer and a remanufacturer," Economics Bulletin, AccessEcon, vol. 36(2), pages 963-969.
    9. Zhang, Yunrong & Hong, Zhaofu & Chen, Zhixiang & Glock, Christoph H., 2020. "Tax or subsidy? Design and selection of regulatory policies for remanufacturing," European Journal of Operational Research, Elsevier, vol. 287(3), pages 885-900.
    10. Lijun Meng & Qiang Qiang & Zuqing Huang & Baoyou Zhang & Yuxiang Yang, 2020. "Optimal Pricing Strategy and Government Consumption Subsidy Policy in Closed-Loop Supply Chain with Third-Party Remanufacturer," Sustainability, MDPI, vol. 12(6), pages 1-29, March.
    11. Dingzhong Feng & Lei Ma & Yangke Ding & Guanghua Wu & Ye Zhang, 2019. "Decisions of the Dual-Channel Supply Chain under Double Policy Considering Remanufacturing," IJERPH, MDPI, vol. 16(3), pages 1-20, February.
    12. Chen, Jen-Ming & Chang, Chia-I, 2012. "The co-opetitive strategy of a closed-loop supply chain with remanufacturing," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(2), pages 387-400.
    13. Matsui, Kenji, 2022. "Optimal timing of acquisition price announcement for used products in a dual-recycling channel reverse supply chain," European Journal of Operational Research, Elsevier, vol. 300(2), pages 615-632.
    14. Cetin, Can Baris & Zaccour, Georges, 2023. "Remanufacturing with innovative features: A strategic analysis," European Journal of Operational Research, Elsevier, vol. 310(2), pages 655-669.
    15. Wu, Cheng-Han & Kao, Yi-Jhe, 2018. "Cooperation regarding technology development in a closed-loop supply chain," European Journal of Operational Research, Elsevier, vol. 267(2), pages 523-539.
    16. Hong, Xianpei & Govindan, Kannan & Xu, Lei & Du, Peng, 2017. "Quantity and collection decisions in a closed-loop supply chain with technology licensing," European Journal of Operational Research, Elsevier, vol. 256(3), pages 820-829.
    17. Li, Wei & Sun, Hui & Dong, Hao & Gan, Yuqin & Koh, Lenny, 2023. "Outsourcing decision-making in global remanufacturing supply chains: The impact of tax and tariff regulations," European Journal of Operational Research, Elsevier, vol. 304(3), pages 997-1010.
    18. Zhou, Qin & Meng, Chao & Yuen, Kum Fai, 2021. "Remanufacturing authorization strategy for competition among OEM, authorized remanufacturer, and unauthorized remanufacturer," International Journal of Production Economics, Elsevier, vol. 242(C).
    19. Han, Xiaohua & Yang, Qianxia & Shang, Jennifer & Pu, Xujin, 2017. "Optimal strategies for trade-old-for-remanufactured programs: Receptivity, durability, and subsidy," International Journal of Production Economics, Elsevier, vol. 193(C), pages 602-616.
    20. De, Arijit & Ray, Ankita & Kundu, Tanmoy & Sheu, Jiuh-Biing, 2023. "Is it wise to compete or to collaborate? Remanufacturing business models under collective extended producer responsibility legislation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 179(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:234:y:2021:i:c:s0925527321000116. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.